Final answer:
The cost of the ending inventory on the balance sheet can be determined using the weighted average inventory costing method. This method calculates the average cost per unit and multiplies it by the number of units in the ending inventory.
Step-by-step explanation:
The cost of ending inventory on the balance sheet can be determined using the weighted average inventory costing method.
This method calculates the average cost of all units available for sale, and assigns this average cost to both units sold and units remaining in inventory.
To calculate the ending inventory cost, you would multiply the number of units in ending inventory by the average cost per unit.
In this case, since only one unit was sold, the cost of the ending inventory would be the same as the average cost per unit.
Let's calculate the average cost per unit:
Add up the cost of each unit in the closing stock prices: $8.625 + $30.25 + $27.625 + $46.75 + ...
Divide the total cost by the number of units in the closing stock prices.
Once you have the average cost per unit, you can multiply it by the number of units in ending inventory to find the cost of the ending inventory on the balance sheet.